WWE has settled a lawsuit against them started by shareholders alleging that the company violated the Security Exchange Act by making false and misleading statements regarding their relationship with Saudi Arabia. The lawsuit stated WWE failed to disclose potential negative information which led people to purchase stock at artificially inflated prices.
Recently, they filed a motion to dismiss this lawsuit but a judge denied that. According to a new 8-K filing released by the company, on Wednesday, November 18th, 2020, WWE entered into a term sheet to settle the lawsuit. the filing notes the following terms:
- The settlement will include a full release of all Defendants in connection with the allegations made in the lawsuit, and will not contain any admission of liability or admission as to the validity or truth of any or all allegations or claims by any of the Defendants.
- The Term Sheet provides for a settlement payment, subject to Court approval, of $39 million (inclusive of all Plaintiffs’ attorneys fees and expenses and settlement costs), all of which the Company expects will be paid by the Company’s insurance carriers.
- The Company believes that resolving the matter is the right business decision and that it is prudent to end the protracted and uncertain class action process.
In other lawsuit news, Shane McMahon, who has not been seen on TV since The Disappearance of Raw Underground, was named in a lawsuit against Ideanomics. Shane serves as Vice Chairman of the Board. Learn more about that at this link.